All Forum Posts by: Simon Shih

@Account Closed. Might be a mistake, but I'm not the one asking the question ;)

Just to make sure you know this, but a 203K loan is for owner occupied real estate. Are you planning on living in it for a year to season the mortgage? Also, it's really hard to get a mortgage for less than 50K, so be careful what you wish for. 

I think I might be more confused than ever.

That's weird. From what I understand, a HELOC is a line of credit that uses your home as collateral. The only thing that banks usually limit is the amount loaned or LTV. I never heard of limitations on how you use the line of credit. It would be like a bank saying you can only use your credit card for certain things. Are you sure they were referring to something else? Like a 203K?

@Tim Shin. Zestimates and Rentometer have rents at 1200, but I think 800-1000 is more realistic. I grew up in the area and know it really well. I'm always looking for deals and people to partner up with on deals. Half a deal is more than 100 percent of nothing. 

@Matt Morgan. @Victoria Riggs   Wow that's crazy. I hope people in Texas don't figure this out.

Correct. The same 1M property with a NOI of 200K would be a cap rate of 20%.

The capitalization rate, often just called the cap rate, is the ratio of Net Operating Income (NOI) to property asset value. So, for example, if a property was listed for $1,000,000 and generated an NOI of $100,000, then the cap rate would be $100,000/$1,000,000, or 10%

Thanks @Cal Ewing. Yeah I'll definitely keep that in mind. I'll send you a colleague request.

Hey @Cal Ewing. Yeah I'm ready to get back to real estate investing. I'm stuck offshore on a job right now. i actually did the rehab estimate, made the offer and put the house under contract on a boat 250 miles off the coast of Louisiana.

I targeted absentee owners in the zip codes I was interested in. 60-100% equity, SFR. I sent our half of my 2000 mailers and the other 1000 are sitting on my desk at home waiting on stamps and then to be dropped into the mail.